Since reaching $0.0016, Pump.fun has shown upward momentum, reaching a local high of $0.0019. In fact, the altcoin, at the time of writing, Pump.fun (PUMP) was trading at $0.001906, down 3.02% on the daily charts.
Pump.fun whale collects 947 million PUMP tokens
With PUMP holding below $0.002, this has created a perfect buying opportunity for large entities, especially whales.
According to Lookonchain, a newly created wallet purchased 947.31 million PUMP worth $1.86 million. This whale has been on a buying spree for two days.
Usually, when a whale enters the market to accumulate during a period of weakness, it displays confidence and anticipates the market’s recovery.
It is important to note that this whale purchase is not an isolated case, as large holders have been accumulating aggressively. According to Nansen data, Top Addresses added 4.3 billion PUMP tokens in the last 24 hours.
Source: Nansen
Historically, increased whale accumulation has strengthened the bullish momentum of an asset, causing prices to rise. So, if Pump.fun whales continue to buy, demand-side liquidity could help PUMP escape the current bear trap.
Along with this, the team continued to pivot the market, absorbing market pressure through buybacks. In the last 24 hours, Pump.fun spent 99% of its daily earnings, or $1.2 million, and purchased 15,011 PUMP tokens.
Source: Token Terminal
The team’s continued buybacks show its commitment to the asset, helping to build pressure on the demand side, a key driver of price recovery.
Downside risk remains high
As whales continue to accumulate, other market participants have shown a tendency to take even small gains. On March 2, the altcoin recorded 1.7 billion in spot sales volume, compared to 1.2 billion in buy volume.
Source: Coinalyse
This imbalance left the market with a negative buy-sell delta of -500 million, a clear sign of aggressive spot sales. Often, increased selling pressure in the spot market accelerates bearish momentum.
In fact, the bearish momentum of the altcoin continues to hold the market strongly, as evidenced by the Stochastic Dynamics Index (SMI). Looking at the indicator, it is still in the negative zone, which suggests that sellers have complete control over the market.
Source: TradingView
So, even though buyers, especially whales, have tried to absorb the pressure, their demand remains insignificant to take PUMP out of the mainstream.
So, continuation of the prevailing sentiment could see PUMP fall again towards $0.0016. However, if whale demand helps the altcoin close above $0.0019, it will be strong enough to target $0.0022.
Final summary
- PUMP rebounded from $0.0016 to a local high near $0.0019, but remained below the $0.002 threshold.
- A newly created wallet accumulated 947.31 million PUMP worth $1.86 million over two days.
